Solana has announced the launch of Baillie Gifford’s Enhanced Yield Fund ($BAGEY) as the first publicly available, fully native UK-regulated tokenized fund issued directly on-chain.
Unlike traditional fund wrappers that rely on off-chain paper records, this new product uses the public blockchain as the official legal source of truth. Built within a UK Open-Ended Investment Company (OEIC) structure alongside banking giant BNY Mellon, the fund allows professional investors to process subscriptions and redemptions directly using USDC.
$BAGEY has launched on Solana.
The Baillie Gifford (@BGDA_UK) Enhanced Yield Fund is the first publicly available, fully native UK-regulated tokenised fund issued onchain, settled in USDC, built with BNY.
Not a wrapper. The blockchain is the register of record. pic.twitter.com/jH1p55UY8q
— Solana (@solana) June 22, 2026
How does this impact asset tokenization
Tokenizing real-world assets is becoming an important link between traditional finance and blockchain technology. Asset managers, banks, custodians, and fintech companies are testing tokenized models to see if funds, bonds, treasuries, private credit, and money market instruments can move more efficiently on digital platforms.
The Baillie Gifford launch is notable because it brings together a major investment manager, a global custodian, public blockchain infrastructure, and a regulated UK fund structure. This puts the product within the larger institutional tokenization trend, not just as a separate crypto project.
Katey Neate, global head of investor solutions at BNY, said the launch shows a change from theory to deployment.
“Tokenization has moved from concept to real-world application, and this launch shows how regulated fund structures can evolve to meet the needs of a more digital, connected marketplace,”
Neate said.
Regulatory evolution in the UK fund industry
The UK Financial Conduct Authority is updating its legal rules for public networks. This move is similar to what we see in other global markets, where traditional managers want faster settlement times.
The product is aimed at professional investors in the UK, Switzerland, and the Cayman Islands. It records ownership directly on-chain instead of using extra token wrappers, which helps reduce operational hassle. Unlike traditional funds that depend on old systems, this approach lets investors interact directly with fund assets.
Meanwhile, the UK’s Financial Conduct Authority (FCA) has also warned football clubs, including several Premier League teams, about the risks of working with unregulated digital asset companies. The FCA says some crypto firms use big sponsorship deals to promote their products to fans without having the required UK legal approvals. The regulator has spoken with several clubs and encouraged them to do more thorough checks before making commercial deals in the cryptocurrency sector.
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